off-the-wire

UPDATE 1-Moroccan central bank raises benchmark interest rate to 3%

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds details) RABAT, March 21 (Reuters) - Morocco's central bank on Tuesday hiked its benchmark interest rate by 50 basis points to 3%, saying the decision was necessary to curb inflation. Inflation, triggered by food prices, is expected to drop to 5.5% in 2023 after 6.6% last year, the bank said after its quarterly board meeting.


Morocco's food inflation soared 16.8% in January, leading the government to impose export restrictions on some vegetables.


The Bank expects Morocco's economic growth to pick up to 2.6% this year from 1.2 in 2022, assuming a below average cereals harvest at 5.5 million tonnes.


The current account deficit is expected to narrow to 2.8% of GDP in 2023, down from 3.9% in 2022, due to a forecasted drop in energy imports, it said.


Morocco foreign exchange reserves would stand at 359 billion dirhams ($35 bln) in 2023, enough to cover five months and 21 days of import needs, the bank said.


The quarterly news conference by central bank governor Abdellatif Jouahri was cancelled for personal reasons, the bank's spokeswoman Sarah Belkasmi told reporters.




(Reporting by Ahmed Eljechtimi, Editing by William Maclean and Ed Osmond)

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